Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Beagle Beauties engages in the development, manufacture, and sale of a line of cosmetics designed to make your dog look glamorous. Below you will

image text in transcribed

Beagle Beauties engages in the development, manufacture, and sale of a line of cosmetics designed to make your dog look glamorous. Below you will find selected information necessary to compute some valuation estimates for the firm. Assume the values provided are from year-end 2019. Also assume that the firm's equity beta is 1.20, the risk-free rate is 2.40 percent, and the market risk premium is 9.0 percent. Dividends per share Return on equity Book value per share $ 2.16 11.50% $17.95 2019 value per share Average price multiple Forecasted growth rate Earnings $ 5.00 13.10 13.54% Cash Flow $ 6.50 Sales $25.65 9.48 11.35% 2.42 7.04% Using the PE, P/CF, and P/S ratios, estimate the 2020 share price for Beagle Beauties. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Using PE ratio Using P/CF ratio Using P/S ratio Share Price

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Financial Management

Authors: Eugene F. Brigham, Joel F. Houston

15th edition

1337671002, 978-1337395250

Students also viewed these Finance questions

Question

What is managements primary objective?

Answered: 1 week ago

Question

What is a classifi ed balance sheet?

Answered: 1 week ago